Test Online Free CIPS L4M8 Exam Questions and Answers
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Answer: A cross-function Team is the involvement of all departments that are in an organization to contribute knowledge, skills and innovation towards adding value to achieving the organization’s strategic goal. Example, procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization.
When working in a cross-functional team, members of the organization give support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information
Question 32Selectable Answer
Which Incoterm applies here?
The supplier is responsible for delivering the goods to the buyer’s premises include arranging any custom clearances that applies, bearing all risk up until this point.
Answer:
Question 33Written Answer
CORRECT TEXT
Describe two ways in which an organization with which you are familiar could use continuous im-provement as part of whole life asset management.
Answer: Continuous improvement relates to removing waste from the supply chain and improving processes to increase efficiency within whole life asset management in a full power project (a flour producing firm) can benefit from continuous improvement in the following ways;
1) Reduce cost of spears by recondition parts, instead of disposing them out rightly.
2) Can reduce down time by conducting routine maintenance after hours.
3) Can reducing accident by up skilling operators on safety
4) Can reduce waste oil by following owner’s manual instead of relying on experience.
5) Create efficiencies by operating a 24/7 shift pattern.
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Refer to the question column for response
Question 34Written Answer
CORRECT TEXT
Research the values and ethical code of practice of an organization with which you are familiar.
Answer: Fullpower projects is a training firm that trains on project management and procurement.
It has the following values and ethical code of practice
1) Accountability
2) selflessness
3) openness
4) integrity
5) objectives
6) Honesty
7) Leadership
Question 35Written Answer
CORRECT TEXT
How does positive social impact present itself?
Answer: Organizations which display good behavior create a positive social impact.
The com-munity in which they are based and to which they supply will benefit from the following.
Question 36Written Answer
CORRECT TEXT
Using the case study about Toyata, which type of benchmarking Tada has used when comparing the Toyata with Porsche?
Answer: Benchmarking is the process of comparing a function, process or performance with another which is best-in-class. Benchmarking is either internal or external. External benchmarking has three types; 1) Competition benchmarking, 2) Functional 3) Generic
Company Toyota with the Porsche a competition in the same industry and by suggesting that drives will find the cars performances comparable with that of Porsche Cayman sports car, suggest think it is an external competitive benchmark.
Question 37Written Answer
CORRECT TEXT
What is depreciation and deterioration?
Answer: When an organization want to purchase an asset, it considers the depreciation and deterioration in the whole life of the asset and how it will be manage.
Depreciation is the reduction in value of a tangible and a fixed asset over time. The purpose of calculating the depreciation of the asset is to give the organization a fair and current view of what the asset is worth at a particular time. Depreciation is a way of converting the cost of an asset into an expense over a period of time. Depreciation is a permanent feature listed against an asset throughout its life time and it based on wear and tear, reduction in performance and reduction in value.
Deterioration is the process of something becoming lower in quality or performance. The longer the asset can last without deteriorating the better value the asset represents.
Question 38Written Answer
CORRECT TEXT
Describe a situation where amendment or an addendum would need to be created
Answer: After all the due diligence is carried out, before awarding contract to the best supplier, sometimes procurement professionals find themselves in some problem solving situation; this might have been emanated from supplier facing a financial challenge or problems from external environment. Responding to this might require an amendment or an addendum, depending on the case in hand.
An amendment is for a physical change in the existing contract for example; if a contract
contains a negotiated and agreed fixed price for the period of the contract but unexpected market forces such as an economic down turn or force majeure occur, the supplier may have to request an amendment order to continue to make a profit.
An addendum is when an additional document is added to the existing contract for example, If a contract have a schedule of rates and the market forces prices up, an addendum can be added to an existing contract with a revised schedule. Once accepted, the addendum becomes part of the con-tract. Addendum are physically used when the forecasted cost of a project rises and approval is needed to increase the contract spend
